SIKESTON, Mo. (AP) — A southeast Missouri contractor has agreed to pay $25,000 to settle a claim that it discriminated against a black employee.

The U.S. Equal Employment Opportunity Commission announced the settlement Wednesday with Floyd’s Equipment Inc. in Sikeston.

The agency said in a news release that issues arose after the employee complained that a foreman was repeatedly using a racial slur. The release says instead of disciplining the foreman, the black employee was demoted from being a backhoe operator to a job doing pick-and-shovel work in another state. The employee ultimately was fired.

Under the settlement, the company also agreed to provide anti-discrimination training and develop policies.

The company’s owner didn’t immediately return a phone message from The Associated Press.